The Commission is moving forward with the process outlined in Article 93 (2) of the Treaty.
JD.com, a prominent global player in the e-commerce sector, has announced its intention to acquire Ceconomy, the parent company of MediaMarkt-Saturn, for a staggering €4 billion. This move is set to strengthen JD.com's presence in Europe, where it has so far been marginally active.
Based in China, JD.com operates an online shop called Joybuy in Europe. The company describes itself as "a leading global technology and service provider with a supply chain as its core and China's largest retailer by revenue." JD.com's strengths lie in its own logistics and technological expertise, which it hopes to leverage in its European expansion.
Ceconomy, on the other hand, operates under the main brands MediaMarkt and Saturn with a nationwide branch network and online trading. The company is present in more than 1,000 markets in eleven European countries, with nearly 400 of them in Germany. At the end of September 2024, Ceconomy employed around 50,000 people worldwide, including around 17,000 in Germany.
A quarter of Ceconomy's turnover in the most recent full fiscal year came from online business, indicating a strong digital presence. In the same year, Ceconomy generated a turnover of 22.4 billion euros, demonstrating its financial stability.
The deal is not yet final, as the Federal Minister of Economics, Katharina Reiche (CDU), could still veto the deal if she has security-related concerns. However, the German competition authority has already approved the acquisition, deeming it to have few competitive touchpoints and not raising any competition law concerns.
The acquisition of MediaMarkt-Saturn by JD.com makes the Chinese e-commerce giant set to become the majority shareholder of Ceconomy. This move is expected to further boost JD.com's revenue, which was nearly 159 billion USD in 2024. With this acquisition, JD.com aims to solidify its position as a global e-commerce powerhouse.
Andreas Mundt, President of the Federal Cartel Office, stated that JD.com has been only marginally active in Germany so far. However, with the acquisition of Ceconomy, JD.com is poised to increase its presence in Germany and other European countries, where it is currently marginally active or in early stages.
In conclusion, the proposed acquisition of Ceconomy by JD.com marks a significant step in JD.com's European expansion. The deal, if finalised, is expected to boost JD.com's revenue and solidify its position as a global e-commerce powerhouse.
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